【Haichuan EPC】What are the key points for controlling design costs?

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(3) Control of design costs ① Set objectives: Based on the principle of optimal cost-performance, multiple options are compared with the preliminary design estimate as the upper limit. ②Cost target breakdown: Establish a CBS control table for cost target breakdown. ③Before the preparation of the construction drawings, a technical and economic analysis is conducted on factors that have a significant impact on costs, such as equipment selection, building structure types, and material choices. Only after these requirements are met is the drawing design commenced. ④Compare the actual design costs, workload, and the set limits; if the design exceeds these limits, carry out design optimization. If optimization is not possible, seek clarification and update the design estimate after approval. ⑤Referring to value engineering analysis, the analysis should primarily focus on systems involving large investment amounts (such as equipment with complex structures, great size or weight, expensive raw materials, or special performance characteristics; or individual units with high costs). For example, in terms of controlling overdesign: originally, a piece of equipment weighed 15 tons; after certain processing steps, its weight increased to 19 tons. To ensure safety, the design of its foundation might be adjusted so that it can support up to 25 tons. Such incremental increases must be avoided. ⑥Issues such as the land area required for equipment layout, pipeline routing, and safe production all have an impact on the scale of investment. Based on feasibility analysis, it is necessary to compare the construction costs of various layout schemes in order to select the optimal one. ⑦Among the imported foreign process patent technology projects, patent holders often recommend the use of imported equipment. However, such equipment is expensive; therefore, designers need to thoroughly understand the technical specifications and performance requirements of these products, as well as the intentions behind them, in order to determine whether it is possible to manufacture them domestically and thus reduce investment and maintenance costs. ⑧Control design changes; design changes do not include those resulting from additional requirements from the owner or external factors. (4) Design completion: During the completion phase, the design manager and the responsible persons for various specialties must, in addition to submitting the design documents as required by the contract, also prepare all the relevant documents needed to close out the contract. Based on the drawings, documents, and relevant records, organize the preparation of a master index for the project design documents and archive it. Conduct a comparative analysis of the archived construction drawing budget and the estimated cost control to identify areas where savings have been achieved or where costs have exceeded the estimates, analyze the reasons behind this, and accumulate experience or develop improvement measures. The design manager organizes the preparation of the design completion report, participates in the compilation of the project completion report, and provides feedback on experiences and lessons learned. The focus is on summarizing lessons learned, the chaotic aspects of the management process, and cost control efforts.